Global companies have committed a $10 billion investment in food processing, technology, cold chain and retail in the next two years in the run-up to the World Food India event, a mega show of the Indian government scheduled for November 3-5 to attract foreign investment and create 1 million jobs.
Foreign companies such as Metro, Mountain Rail, will contribute in investment in foods retail sector with 100% Foreign Direct Investment. With a 40% increase in FDI from last year to this year, there’s already $200 million that has come in this year.
The reason for the slow progress of the food industry is that it is more capital intensive than many other sectors.
The upcoming events like the World Food India will double the framers’ income other than other objectives.
The government has taken a number of policy decisions to create the infrastructure and the environment where this might flourish over the past three years.
The food processing ministry, which works closely with the ministry of health, has made several progressive changes in the sector along with the FSSAI.
It acted as a trigger to improve systems at large. Individual ingredient approval was choking the market, for example. It highlighted a lot of discrepancies.
The FSSAI has harmonised itself to global standards and a lot of progress has been made.